The old paradigm of passive versus active has become obsolete, proponents of passive management win on lower fees, while proponents of active management see indexing as settling for a tie. The past ten years has brought about a development of new, rules based, non-market cap weighted strategies that seek to exploit investment factors that can drive returns. These factor based strategies are being marketed under the Smart Beta moniker and have raised over $500 billion in assets according to Morningstar.
This presentation will seek to define Smart Beta, classify the factors that drive investment returns, critique the risks of Smart Beta to investors, and discuss implementation techniques.
Kevin Yousif, CFA - Bio